Which of These Statements Best Represents the Law of Demand

question 16

Multiple Choice

Which of these statements best represents the law of demand?

• A)When buyers' tastes for a good increase,they purchase more of the good.
• B)When income levels increase,buyers purchase more of most goods.
• C)When the price of a good decreases,buyers purchase more of the good.
• D)When buyers' demands for a good increase,the price of the good increases.

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Definitions:

Horizontal Merger

A horizontal merger is a business consolidation that occurs between firms who operate in the same industry, often leading to synergies, increased market share, and potentially higher market power.

Conglomerate Merger

A merger between firms that operate in entirely different industries, often aimed at diversification and risk reduction.

Trust

A legal arrangement where one party holds assets on behalf of another, or confidence in the reliability and integrity of a person or entity.

Interstate Commerce Commission

A regulatory agency in the United States established to oversee railroad operations and later expanded to oversee other modes of transportation.